India can leapfrog in global manufacturing with innovation: Report

According to the Accel advanced manufacturing report 2025, India's manufacturing sector has a unique opportunity to surpass global competitors by transitioning from a low-cost production model to one driven by innovation. The report, released at Accel's Advanced Manufacturing Summit, identifies several "sunrise sectors" where India can establish a leadership position, including precision engineering, aerospace, EV components, semiconductors, robotics, and advanced materials. This window of opportunity is described by a Partner at Accel, Mr. Prashanth Prakash, as a "once-in-a-generation" moment for India. The report emphasizes that future competitiveness will depend on the ability to deliver complex, high-tolerance manufacturing supported by strong intellectual property (IP), rather than just competing on low-cost labour, which is no longer a sustainable strategy. Key to seizing this opportunity is the integration of policy momentum, deep-tech capabilities, patient capital, and world-class talent into a unified strategy. Accel's report also highlights that a favourable macro-environment, created by global supply chain realignments, technological disruptions, and supportive geopolitics, coupled with domestic policies like Production Linked Incentive (PLI) schemes, makes this the most opportune time in decades for India's manufacturing sector.
The report acknowledges that while policy support is necessary, its effective execution is a critical challenge. Another partner at Accel, Mr. Prayank Swaroop, advised that founders must adopt a global mindset from the very beginning, focusing on product quality, supply chain design, and technology adoption. He stressed that precision engineering is now a growth engine, not a niche. The report calls for patient and risk-tolerant capital to support hardware development, IP creation, and the long product cycles that are characteristic of advanced manufacturing. It also identifies an urgent need for upskilling in cutting-edge fields like AI-driven design, robotics, additive manufacturing, and automation enabled by the Internet of Things (IoT). Technology adoption, including AI, automation, and advanced simulation, will be the ultimate differentiator for competitiveness. The report concludes with an optimistic but urgent message, asking whether India will seize this decade to define its place in the global industrial order.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.